Question 5
Business UnitsThe partner that only contributes part of the capital used in the formation and running of a business is known as
- A.a passive partner
- B.an active partner
- C.a dormant partner
- D.a nominal partner.
Show the answer and explanation
Answer: C (a dormant partner)
Explanation
A dormant (sleeping) partner only puts in capital and takes no part in running the business.